Assignment: Targeting Incentives
Overview
In two pages, analyze the advantages and disadvantages of different types of pay plans.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
• Competency 4: Evaluate effective incentives and perks programs.
o Describe a situation in which a selected individual incentive plan would be most appropriate.
o Describe a situation in which a selected team incentive plan would be most appropriate.
o Describe a situation in which a selected long-term incentive plan would be most appropriate.
Context
There are various pay plans that recognize merit and performance with different types of incentive plans. In a single company, different business units and goals may set up separate incentive plans to reward work more specifically as it contributes to the overall objectives of the unit. Profit sharing and employee stock ownership plans are popular in private as well as publicly traded companies. The world of pay for performance has taken on a much more sophisticated role in our world of work, especially as our work has changed dramatically from the industrial age to the knowledge age.
Questions to consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• Experience tells us that the practical link of pay to work is not always set up in an equitable environment. Favoritism, nepotism, and other human shortcomings can and do interfere with the implementation of the best plans. How to prevent those shortcomings becomes a difficult challenge for HR managers. If you were designing an incentive plan for a publicly traded company, whose voice do you think should provide that ethical audit at the table of decision makers? The chairman? The board of directors? The shareholders? The employees? The executive team or compensation committee? Outside consultants? Internal HR director? A combination of all of these? Who in your mind would be the best person to ensure that the incentive plan does not cross the line and motivate the wrong kind of behavior-the kind that turns a plan from motivating good behavior into motivating wrong-doing based on the potential for a high reward?
• What is an example of a company you have worked for or read about where someone, motivated by the potential gain from an incentive plan, went beyond the policy and the law, breaking all the rules?
Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Library Resources
The following e-books or articles from the Capella University Library are linked directly in this course:
• Improve performance with incentive plans: Consider goals carefully. (2012). Health Care Collector: The Monthly Newsletter for Health Care Collectors, 25(9), 8-10.
• Ellig, B. R. (2011). Short-term incentives as a performance tool. Corporate Board, 32(187), 22-26.
• Ellig, B. R. (2012). Designing long-term incentives. Corporate Board, 33(193), 19-25.
• Townley, B. (2011). Motivate employees with incentives. ABA Bank Marketing, 43(8), 28-31.
Course Library Guide
A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP4043 - Compensation and Benefits Management Library Guide to help direct your research.
Bookstore Resources
The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase from the Capella University Bookstore. When searching the bookstore, be sure to look for the Course ID with the specific -FP (FlexPath) course designation.
• Newman, J. M., Gerhart, B., & Milkovich, G. (2017). Compensation (12th ed.). New York, NY: McGraw-Hill.
Instructions
There are a range of incentive plans for individuals and groups or teams. Think like an HR director who is responding to a work situation with a pay solution. Consider different types of pay plans along with their advantages and disadvantages.
Complete the following:
• Select one individual plan, one team plan, and one long-term incentive plan.
• Describe a situation in which each of these plans would be most appropriate, and justify why it is appropriate. In your descriptions, include the type of company and type of work as well as the position or positions that would be affected by your plan.
For example, if you selected a team-based plan, you might describe a department in a retail store that has a history of employees not covering for each other during the holiday rush period. You may use actual examples and reference a company as you have witnessed it, or you may describe a generic situation. In your descriptions, include how you think your chosen incentive plan will affect behavior and achieve intended results.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.